6 Month Treasury Rate Market Daily Analysis: Daily Treasury Yield Curve Rates (2024)

FAQs

What is the 6 month Treasury rate today? ›

6 Month Treasury Rate (I:6MTCMR)

6 Month Treasury Rate is at 5.41%, compared to 5.42% the previous market day and 5.04% last year. This is higher than the long term average of 2.84%.

"The Daily Treasury Par Yield Curve Rates" are specific rates read from the daily Treasury par yield curve at the specific "constant maturity" indicated. Thus, a yield curve rate is the single yield at a specific point on the yield curve.

To calculate yield, subtract the bill's purchase price from its face value and then divide the result by the bill's purchase price. Finally, multiply your answer by 100 to convert it to a percentage.

A positive, upward-sloping yield curve occurs when yields of shorter maturities are lower than yields of longer maturities. Conversely, an inverted, downward-sloping yield curve forms when yields of shorter maturities are higher than longer maturities.

Once you buy T-bonds, you get a fixed-interest payment called the coupon every six months. The coupon amount is given as a percentage of the bond's face value. For example, a bond worth $500 with a coupon rate of 5% would pay $25 in interest each year. At maturity, you're paid the bond's face value.

We sell Treasury Bonds for a term of either 20 or 30 years. Bonds pay a fixed rate of interest every six months until they mature. You can hold a bond until it matures or sell it before it matures.

To calculate the price, take 180 days and multiply by 1.5 to get 270. Then, divide by 360 to get 0.75, and subtract 100 minus 0.75. The answer is 99.25. Because you're buying a $1,000 Treasury bill instead of one for $100, multiply 99.25 by 10 to get the final price of $992.50.

What is the yield curve? The yield curve – also called the term structure of interest rates – shows the yield on bonds over different terms to maturity. The 'yield curve' is often used as a shorthand expression for the yield curve for government bonds.

While interest rates and inflation can affect Treasury bill rates, they're generally considered a lower-risk (but lower-reward) investment than other debt securities. Treasury bills are backed by the full faith and credit of the U.S. government. If held to maturity, T-bills are considered virtually risk-free.

How often do 6 month Treasury bonds pay interest? ›

Bonds are long-term securities that mature in 20 or 30 years. Notes are relatively short or medium-term securities that mature in 2, 3, 5, 7, or 10 years. Both bonds and notes pay interest every six months.

The interest income that you may receive from investing in a treasury bill is exempt from any state or local income taxes, regardless of the state where you file your taxes. However, you will need to report interest income from these investments on your federal tax return.

An example of a steepening yield curve can be seen in a 2-year note with a 1.5% yield and a 20-year bond with a 3.5% yield. If after a month, both Treasury yields increase to 1.55% and 3.65%, respectively, the spread increases to 210 basis points, from 200 basis points.

An inverted yield curve in U.S. Treasuries has predicted every recession since 1955, with only one false signal during that time.

The part of the Treasury yield curve that plots two-year and 10-year yields has been continuously inverted - meaning that short-term bonds yield more than longer ones - since early July 2022. That exceeds a record 624 day inversion in 1978, Deutsche Bank said in a note on Thursday.

Basic Info

1 Year Treasury Rate is at 5.13%, compared to 5.13% the previous market day and 4.81% last year.

Basic Info. 3 Month Treasury Bill Rate is at 5.25%, compared to 5.25% the previous market day and 5.10% last year.

Interest income from Treasury securities is subject to federal income tax but exempt from state and local taxes. Income from Treasury bills is paid at maturity and, thus, tax-reportable in the year in which it is received.